Rosmah acquitted in RM7m money laundering case, calls it 'birthday gift'

Summary

• High Court acquits Rosmah Mansor of 12 money laundering charges and five counts of failing to declare income to IRB.

• Wife of ex-PM Najib Abdul Razak welcomes the “happy news”, calling it a “birthday gift”.

• Prosecution will file an appeal.

The Kuala Lumpur High Court has discharged and acquitted Rosmah Mansor of 12 money laundering charges involving RM7 million and five charges of failing to declare her income to the Inland Revenue Board (IRB).

However, the Attorney-General's Chambers (AGC) said it would file an appeal while Rosmah, who is the wife of former premier Najib Abdul Razak, called it a “birthday gift”.

According to Bernama, judge K Muniandy granted an order of acquittal after allowing Rosmah's application to have all charges against her quashed.

The application was based on the grounds that the charges were defective and failed to disclose the essential elements of the alleged offences.

"The charges do not disclose the key elements of the offence of money laundering, including the transaction involving money laundering, the conduct of the accused, and the monies referred to in the charges.

“Additionally, the charges do not reveal a transaction as envisaged under Act 613 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

"The unlawful activity that was tied to the charges was also not disclosed but the proceeds of unlawful activity have appeared from nowhere," he said in his judgement.

Without those elements, the charges only describe the depositing of money into a bank account, which in itself is not an offence, Muniandy added.

"Some of the charges under the Income Tax Act 1967 overlap as the dates and amount stated correspond but the offences alleged to have been committed by the accused is still money laundering, wherein it has to emanate from a serious or predicate offence, forming unlawful activity, so there are no proceeds of it being laundered,” he said.

Rosmah, 73, applied to strike out the charges in September 2023.

The hearing commenced on Dec 12 of the same year, following partial proceedings during which two witnesses had testified.

Speaking to reporters later, lead prosecutor Ahmad Akram Gharib said an appeal would be filed.

Giving Najib ‘happy news’

Rosmah, who described the court’s decision as a “special birthday gift”, said it is also a present for “Bossku” (Najib).

“We will inform him of the happy news. This is what we have been waiting for,” she was quoted as saying by news reports.

Rosmah, who celebrated her birthday on Dec 10, was charged on Oct 4, 2018. The case was later transferred to the High Court.

She faced 12 charges of money laundering involving RM7,097,750 and five charges of failing to declare her income to the IRB.

Rosmah was accused of committing the offences between Dec 4, 2013 and June 8, 2017.

No transaction evidence

Muniandy, in his judgment, stated that even if there is undisclosed income to IRB, there must be transactions demonstrating the accused's involvement with the undisclosed income for it to qualify as money laundering.

"Failing to furnish income tax return comes within Section 77 (1) of the Income Tax Act 1967 (ITA). The offence punishable under Section 112 of the ITA is only triggered if all the available avenues under the ITA are exhausted but it was not done in this case.

"This includes that the income tax assessment has to be raised by the director-general of the Income Tax Department, followed by an appeal process available to the taxpayer under sections 99 to 102 of the ITA or Part VI of the ITA," he said, according to Bernama.

He further emphasised that the final determination of the tax payable would be made by the special commissioner of income tax, and following that determination, the taxpayer would have the option of seeking judicial review.

Solar energy case

Rosmah also has an appeal pending against her conviction in the RM1.25 billion Sarawak rural schools’ solar energy project corruption case pending at the Court of Appeal.

However, Rosmah has also filed an appeal to recuse the trial judge Zaini Mazlan from hearing the case, alleging that certain third parties had prepared a draft of the judgment for him.

The Court of Appeal would hear the matter concerning the judge on March 5 next year and if the recusal is not granted, the court would deliberate on the merits of Rosmah’s appeal and sentence on March 19.

On Sept 1, 2022, Zaini, who is now a Court of Appeal judge, convicted Rosmah and sentenced her to 10 years in prison for each of the three charges.

The judge, who ordered the sentences to run concurrently, also slapped her with a RM970 million fine.

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